Ade­laide Brighton Lim­ited (ABC)

Money Magazine Australia - - SHARES -

Ade­laide Brighton, es­tab­lished in 1882, is one of Aus­tralia’s lead­ers in the pro­duc­tion and sup­ply of con­struc­tion ma­te­ri­als, no­tably ce­ment and lime. In ad­di­tion, its Hy-Tec op­er­a­tion and its Maw­son Group joint ven­ture are sup­pli­ers of pre­mixed con­crete and it has a busi­ness as a sup­plier of ag­gre­gates. The Ad­bri Ma­sonry op­er­a­tion is a lead­ing pro­ducer of con­crete ma­sonry prod­ucts.

Ade­laide Brighton is a key sup­plier to the con­struc­tion and re­sources in­dus­tries, and its for­tunes are heav­ily de­pen­dent on trends in these sec­tors. It sees de­mand for con­crete con­tin­u­ing to rise as ma­jor new in­fra­struc­ture projects and of­fice tower de­vel­op­ments come on-stream in east coast and South Aus­tralian mar­kets. It is also ben­e­fit­ing from a slow re­cov­ery in Western Aus­tralia, af­ter some years of de­cline. Thanks to strong de­mand for its prod­ucts, it has been able to raise prices.

It con­tin­ues to seek out ac­qui­si­tions that will help it di­ver­sify. It is also build­ing new fa­cil­i­ties, in­clud­ing a con­crete plant in Bris­bane and a hard-rock quarry in Gympie, Queens­land. How­ever, it im­ports some of its prod­ucts and is hurt by a weaker dol­lar. It is also neg­a­tively af­fected by ris­ing en­ergy costs, which it ex­pects to add $6 mil­lion to its costs dur­ing 2018. In re­sponse, it is work­ing to mit­i­gate this with op­er­a­tional im­prove­ments and moves to al­ter­na­tive fu­els. In 2013, Ade­laide Brighton ini­ti­ated the process of sell­ing sur­plus land and over the com­ing 10 years it an­tic­i­pates re­al­is­ing some $100 mil­lion in sales.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.